Today’s housing market is unlike any other in history. The past few years have been a rollercoaster for builders and buyers … and some developments that have emerged as a result might surprise a lot of people.
“One of the things we would like prospective buyers – and sellers – to know is that now is the time for new,” said Covington Homes CEO Grace Covington. “For some, a new build is not necessarily the first thing that comes to mind when purchasing a home because the common perception is that new is more expensive, but the current market makes NEW more attractive than ever; particularly given that new construction has reached a point where prices for New Homes are less than resale/ used homes.”
“The housing market is, at its core, dependent upon supply and demand. The demand for pre-owned homes is not being satisfied due to a lack of supply,” said Covington. “The majority of homeowners have very favorable mortgage rates, comparatively, and are in turn asking for a higher price to help offset giving up a lower mortgage interest rate. And many homeowners are staying in their homes and not selling because they feel ‘locked in’ by their lower interest rate. Thus, decreasing the supply of existing resale homes to an historic low. These are some of the factors causing New Homes to be a much better price than resale/ existing homes. Additionally, as a home builder, we have seen build times going down while our production has gone up. Tradespeople are looking for work again.”
The National Association of Home Builders’ website shares a 66% homeownership rate in Colorado, with 2,464,109 housing units (62% of which are single-family detached homes). These figures are proof-positive that housing is not only central to the American way of life, but also essential to our economy.
When you buy a new home, you have the opportunity to:
You can expect your new home – a financial investment – to hold its value, too. A Covington build is about more than the money: it is a lifestyle choice!
For those looking for well thought out, carefully planned and exceptionally executed homes, Covington Homes delivers!
The news has been awash recently with sensational headlines such as ‘Housing prices and mortgage rates hit historic highs,’ or ‘Mortgage demands drops again after FHA loan interest rate hits 21 year high.’
What the news isn’t saying though (because good news doesn’t sell well) is that interest rates are not at historic highs, they are simply higher than the early 2000’s and are just about 2% higher than 2018. Also, what the news isn’t pointing out is that up until 2007, interest rates had been consistently at or above 7% from the 1960’s and earlier.
What the market is doing right now is re-setting rates to levels that have been historically normal. And the rates are projected to decrease and settle somewhere around 5.5% in 2025 and 4.5% in 2027 (depending on which economist and economic outlook you read).
The main takeaway with this information and KEY thing to remember is that a current mortgage interest rate can be refinanced and lowered further down the road as rates settle. And if you do not qualify for a mortgage now with the higher rates, there are avenues you can pursue such as government programs, down payment assistance, and other options. “Contact a trusted mortgage lender to discuss the various options that may be available for your particular situation, as mortgage lenders are highly knowledgeable of these things,” says Covington.